Analysis

This is another example of Prince William confronting aspects of his painful past. His wedding was at Westminster Abbey, where his mother's funeral had taken place. Now, he'll live at Kensington Palace where Diana led an, at times, lonely existence.

William and Catherine will use Princess Margaret's former apartment. It'll be renovated at taxpayers' expense, though officials insist costs will be kept to a minimum. When the Queen's sister undertook a similar exercise in the '60s there were grumblings in Parliament about the amount being spent.

Kensington Palace was the birthplace of Princess Victoria. There, in the presence of her governess, who had come equipped with smelling salts, the 18-year-old learnt she was queen.

Two centuries on, the Cambridges are moving in and setting up court with their officials - though William's father will continue to foot their bills.

The plans have been approved by the Queen and the Prince of Wales. William's household will follow him from their offices at St James's Palace to the historic building, which has been a royal residence since 1689.

The Duke and Duchess currently live in another, smaller property at Kensington Palace when in London.

Prince Harry is expected to move there, from an apartment at Clarence House, when the royal couple take up their new home.

William is an RAF Search and Rescue Force helicopter pilot and - when working - lives with Catherine close to his RAF base in north Wales.

A St James's Palace spokesman said the apartment into which they are moving is currently managed by the charity Historic Royal Palaces and is used for purposes such as offices, classrooms and storage.

"The extent of the work needed to turn the apartment back into a home is not yet known but it is expected that the apartment will not be ready for occupation until at least the middle of 2013," he said.